Depreciation on building (office)

Is it compulsury to charge depreciation on office building ? 

Secondly if last few years if the depreciation is not charged on office building, is it correct to start charging it now?

what about the depreciation not charged during the last few years ?

Replies (3)

Dear Nilesh,

Yes, it's compulsory to charge depreciation on building... or any other fixed asset you used in your busines...
But, as you didn't charge it in previous years... that should be deemed that you have been granted the depreciation pertaining to that period... which means you should start charging dep. from this year after deeming that you have been granted dep. @ 10% in previous years... even though you didn't claim it in your ITR... e.g. you purchased building of Rs. 1 crore... 4 years back.. then start this year with Rs. 65.61 lakh as gross value and charge depreciation on it...  (WDV method)
 

Best Regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com
+91-9891400405

The difference in op wdv (dep. not charges for last period) should be debited to capital a/c ?

Dear Nilesh,

yes, that amount should be adjusted with your capital.

 

 

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